Tengku Zafrul picks apart Dr Mahathir’s ‘clearly false’ claims about US-Malaysia trade deal

Tengku Zafrul picks apart Dr Mahathir’s ‘clearly false’ claims about US-Malaysia trade deal



Former prime minister Tun Dr Mahathir Mohamad speaks to the press at the Perdana Leadership Foundation in Putrajaya on December 10, 2024. — Picture by Sayuti Zanudin

Friday, 08 Aug 2025 9:34 AM MYT


KUALA LUMPUR, Aug 8 — Datuk Seri Tengku Zafrul Aziz has rebutted former prime minister Tun Dr Mahathir Mohamad’s criticism of Malaysia’s recent trade arrangement with the United States, saying the latter was making “false allegations” and misrepresenting facts surrounding the deal.

In an Instagram post today, the minister of investment, trade, and industry dismantled Dr Mahathir’s claim that the government was overly eager about the deal and had made concessions that unfairly benefitted the US.


Among others, Dr Mahathir alleged Malaysia was removing all taxes on 11,000 American products in return for a modest drop in US tariffs on Malaysian exports from 25 per cent to 19 per cent.

Tengku Zafrul countered that only 60.4 per cent of the tariff lines will be zero-rated, not 100 per cent as alleged by the former prime minister.


“There’s a significant difference between 60 per cent and 100 per cent, Tun,” Tengku Zafrul wrote, calling the claim “clearly false.”

Dr Mahathir also criticised a supposed commitment by Malaysia to supply unprocessed rare earth to the US at a low return.

Tengku Zafrul clarified that there is no exclusive supply agreement for rare earth, nor any intention to export the material in raw form.


He said Malaysia’s existing policy mandates that rare earth must be processed domestically before being exported.

“Please reread the official statement, Tun,” said Tengku Zafrul, challenging Dr Mahathir to disclose the source of his claim.

Tengku Zafrul further said that while criticism is acceptable, it becomes problematic when it is based on falsehoods.

He also said he viewed the government’s approach as a responsible effort to protect Malaysian jobs and livelihoods, rather than seeking approval.

Earlier this month, US President Donald Trump announced the new “reciprocal” tariff of 19 per cent on Malaysia, down from the 25 per cent he originally imposed, following negotiations between the two countries.

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